1. From the data in Table 5.5 about demand for smart phones, calculate the price elasticity of demand from: point B to point C, point D to point E, and point G to point H. Classify the elasticity at each point as elastic, inelastic, or unit elastic. Points P A 60 3,000 B 70 2,800 C 80 2,600 D 90 2,400 100 2,200 110 2,000 120 1,800 130 1,600 Table 5.5

2) Calculate the price elasticity of demand for each price: VALUE KIND OF PRICE AMOUNT INCOME ELASTICITY ELASTICITY 7 4 6. 3 8 10 1. 12 14

Considering the concept of elasticity of demand, which of the following items is likely to be the most elastic?   Question 20Select one: a. Fresh water b. Tobacco / cigarettes c. Medical procedures d. Bottled air from Banff e. Gasoline

1. If a decrease in income results in a decrease in quantity demanded of a good, then for that good the: cross-price elasticity of demand is negative. price elasticity of demand is negative. income elasticity of demand is negative. income elasticity of demand is positive.

Which of the following statement is correct about the price elasticity of car and the price elasticity of ice creama. The price elasticity of car is lower than the price elasticity of ice cream.b. The price elasticity of car is greater than the price elasticity of ice cream. c. There is not any relation between the price elasticity of car and the price elasticity of ice cream.d. All answers are wrong

15.  Use the graph to answer the question that follows. What is the price elasticity of demand when price increases from $2 to $4? 0.2 0.5 2 3 5

4-6 Suppose that the price of croissants rises from $2 to $3 per unit. Use the mid-point approach to get the elasticity. answer the following The quantity of orange juice purchased falls from 10 million bottles to 5 million bottles. What is the cross-price elasticity of demand between croissants and orange juice? Are they complements or substitutes? The quantity of jelly purchased increases from 10 million jars to 20 million jars. What is What is the cross-price elasticity of demand between croissants and jelly? Are they complements or substitutes?

4-6 Suppose that the price of croissants rises from $2 to $3 per unit. Use the mid-point approach to get the elasticity. The quantity of orange juice purchased falls from 10 million bottles to 5 million bottles. What is the cross-price elasticity of demand between croissants and orange juice? Are they complements or substitutes? The quantity of jelly purchased increases from 10 million jars to 20 million jars. What is What is the cross-price elasticity of demand between croissants and orange juice? Are they complements or substitutes?

2. Imagine that you run a small bakery. In March the price of a cupcake was $2, and you sold 50 per day. In April you increased the price of cupcakes to $3 and you sold 40 per day. 1. Did your revenue increase or decrease? 2. What was the price elasticity of demand to Cupcakes when price increased from $2 to $3. 3. Do you think demand was elastic or inelastic prior to the change in prices

5. If the price elasticity of demand for a good is 1.5, we would say that its demand is  a)inelastic b)elastic c)increasing d)normal